Should I file a provisional or utility patent? In order to be granted a patent, you must file a “utility” patent application.  That filing must contain enough detail to show the people in your field what your invention is and how it works.  If you don’t have all of those details ready for filing or […]

The United States recently switched from the so-called “first to invent” system to the so-called “first to file” system. Under the old law, an inventor has an opportunity to argue he or she actually invented first even if he or she applied for a patent later than her competitor. If successful, the first inventor would […]

As a technology startup, your core technology might be the company’s largest asset and the cornerstone of the business. Owning patents or applying for patents demonstrates the company has cutting-edge technologies and is investing in developing and protecting its IP. A strong patent portfolio can boost a company’s value and help attract investors. Patents can […]

Term sheets for venture capital financings include detailed provisions describing the terms of the preferred stock being issued to investors. Some terms are more important than others. The following brief description of certain material terms divides them into two categories: economic terms and control rights. Economic Terms: Valuation/Purchase Price. Pre-money valuation is used to determine […]

Entrepreneurs need to determine which VCs to contact. Once you’ve done your research, made a list of potential investors to approach and prioritized that list, you’re ready to plan how you get meetings with them. To get a meeting, you should try to get an introduction to the VC, and your job is find someone who […]

Entrepreneurs need to determine which VCs or angel investors to seek to raise money from. Don’t waste your time with investors who aren’t likely to be interested in your business—either because of the company’s industry, stage or otherwise. Some of the more important considerations when choosing investors include: Industry Focus Each investor has a different […]

You’ve got a great idea and you’ve put together a great team. All you need now is the seed capital to launch your venture. Do you ask your friends and family to become your first investors? It’s a question with no easy answer and any decision you make will come with a host of both […]

This is a complex question. The answer really depends on the facts and circumstances. For example, the information below assumes that the company is privately held and does not otherwise wish to engage in a public offering like an IPO. So you need to get good legal advice to determine the best answer for you. […]

Founders Agreement Founders of technology-based and life sciences startups do not generally enter into “employment agreements” with their companies. Employment agreements typically provide the employee with rights to severance and other employment-related protections. Because of the large equity stake the founders have in the company and the importance of cash to a startup, investors will […]

Do I need a Terms of Service and Privacy Policy for the company’s website? These are two common questions startups ask when they’re building an online presence through their company’s website. Our friends at WilmerHale are providing some useful information about why your business needs these two essential online contracts. A. Why do I need a Terms of Use for […]

How much does the market dictate when it comes to compensating your employees? All employees must be paid in cash in amounts to least to satisfy the minimum wage laws established by federal and state laws. Employees may receive equity in addition to cash payments, but due to tax and other complexities, it is generally […]

Who should be on my board? What types of actions should they be approving? These are common questions that small businesses ask themselves as they grow. A board of directors has the ultimate authority to direct the management of the business and affairs of the company. Legally, the board will authorize the issuance of stock, […]